Pensions are for anybody who wants to provide an income for themselves
when they reach retirement age. The state pension is small and if
you don't have access to a company pension scheme, the only real alternative
is to provide one for yourself.
The good news is that the government realises that people need help,
so it has provided generous tax beaks for those who decide to help
themselves.
What are Stakeholder Pensions?
A Stakeholder pension scheme is a type of low-cost pension scheme
that allows you to save in a tax efficient way for your retirement.
You simply contribute during your working life, then when you retire,
the funds which have built up provide you with an income for the rest
of your life. At the moment people also receive their basic state
pension on top of any other pension they have.
Pensions are a long-term investment and the tax man is on your side.
So be sure to take full advantage.
What are the advantages of saving for retirement
with a Personal pension?
• Your contributions receive income
tax relief, normally at your highest marginal rate.
• Your investment will grow free
of UK Capital Gains Tax.
• You can take up to 25% of your
fund as a tax-free cash lump sum at retirement.
• Your dependents do not normally
have to pay tax on any cash lump sum they receive if you die before
retirement.
Why should I start a pension?
As already mentioned, the basic state pension does not enable most
people to maintain their standard of living. The situation is likely
to get worse as there are more pensioners and people are living longer.
It's a a case of there being fewer workers to pay into the state scheme
and more pensioners taking money out. So the only way to make sure
you have enough money to live comfortably is to be a member of an
occupational pension scheme or to provide a pension for yourself.
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you would like more information about pensions or an informal chat
please contact us. |
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The
Difference Between an Independent Financial Adviser and Other
Salesmen:-
In the late 1980's, new laws meant that
all Financial Advisers had to choose whether they wanted to
be Independent and free to recommend any product from any company
they wished, or be tied to one company and only allowed to sell
the products of that company.
The difference between the two forms of Financial Advisers is
that IFA's, like ourselves, stand alone - we are appointed by
a client to find the most suitable product in the market. In
contrast, other Advisers represent one insurance company and
are permitted to sell only the products of that company. Every
individual has different financial needs, so it is unlikely
that one insurance company can hope to provide the entire solution
for everyone.
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